Why do Estate Agents do this?

Linoge

Phoned an EA yesterday to view 1 of the below apts. Apparently, they were already under offer (and taking a deposit today) for €290k.

http://www.daft.ie/searchsale.daft?id=680426
http://www.daft.ie/searchsale.daft?id=680427

To say this reeks of BS is an understatement. 2 apartments to close, 60k above asking within 2 weeks of first ad?? And I have never heard of an EA actually undervaluing a property so much. 2 immaculate apts, with parking spaces, south facing balcony, 8th floor and for 10k less than similar in the same complex.

Of course she very much wanted to take my contact details to let me know of anything else that comes up. Thanks love, but I do have Internet access.

Similar happened about 6 months ago for a 3 bed. EA emailed me pics etc, then when I asked to view it was suddenly sold.

Why are they doing this? To build some fake confidence in the market? To look like they have loads of houses on their books?

Procrastastudy

Linoge wrote: »

Phoned an EA yesterday to view 1 of the below apts. Apparently, they were already under offer (and taking a deposit today) for €290k.

http://www.daft.ie/searchsale.daft?id=680426
http://www.daft.ie/searchsale.daft?id=680427

To say this reeks of BS is an understatement. 2 apartments to close, 60k above asking within 2 weeks of first ad?? And I have never heard of an EA actually undervaluing a property so much. 2 immaculate apts, with parking spaces, south facing balcony, 8th floor and for 10k less than similar in the same complex.

Of course she very much wanted to take my contact details to let me know of anything else that comes up. Thanks love, but I do have Internet access.

Similar happened about 6 months ago for a 3 bed. EA emailed me pics etc, then when I asked to view it was suddenly sold.

Why are they doing this? To build some fake confidence in the market? To look like they have loads of houses on their books?

HOW MUCH?!!

Nedser101

That add must be from 2007

OMD

Linoge wrote: »

Phoned an EA yesterday to view 1 of the below apts. Apparently, they were already under offer (and taking a deposit today) for €290k.

http://www.daft.ie/searchsale.daft?id=680426
http://www.daft.ie/searchsale.daft?id=680427

To say this reeks of BS is an understatement. 2 apartments to close, 60k above asking within 2 weeks of first ad?? And I have never heard of an EA actually undervaluing a property so much. 2 immaculate apts, with parking spaces, south facing balcony, 8th floor and for 10k less than similar in the same complex.

Of course she very much wanted to take my contact details to let me know of anything else that comes up. Thanks love, but I do have Internet access.

Similar happened about 6 months ago for a 3 bed. EA emailed me pics etc, then when I asked to view it was suddenly sold.

Why are they doing this? To build some fake confidence in the market? To look like they have loads of houses on their books?

http://www.let.ie/holiday-homes/William-Bligh-Apartments-The-Gasworks-Barrow-Str-Dublin-4-Co-Dublin/20679
If a one bed can really get this much rent then the price may be real.

GetWithIt

Procrastastudy wrote: »

HOW MUCH?!!

It's ok. Sure the mortgage interest relief is worth, what, 25-30K? Annually? Oh, something like that. It's a canny investment.

liffeylite

OMD wrote: »

http://www.let.ie/holiday-homes/William-Bligh-Apartments-The-Gasworks-Barrow-Str-Dublin-4-Co-Dublin/20679
If a one bed can really get this much rent then the price may be real.

exactly! 300k is a steal if you can rent out for that much

until more properties are built in key areas of Dublin, or NAMA releases more apartments to the rental and purchase market, the rental prcies will keep moving steadily northwards.

its a crazy situation. you can buy an apartment in the city centre for 80k but you cant rent one for less than 800 a month..

murphaph

liffeylite wrote: »

exactly! 300k is a steal if you can rent out for that much

until more properties are built in key areas of Dublin, or NAMA releases more apartments to the rental and purchase market, the rental prcies will keep moving steadily northwards.

its a crazy situation. you can buy an apartment in the city centre for 80k but you cant rent one for less than 800 a month..

This suggests that the "problem" is one of credit supply, rather than real estate supply, no?

If apartments are cheap (which I believe they are tbh), the market for them (to buy) is presumably small. Why is that market small, when it is certainly cheaper to buy an 80k apt than rent it for 800pm? It can really only be, that the would be purchasers, can't get a mortgage for it, for whatever reason, so they are left to investors to buy and rent out at pretty good yields.

I don't see what NAMA flooding the market with cheap properties does for that issue of credit supply. Banks seemingly wouldn't lend you a fiver to buy an apartment in Dublin right now, so there's the "problem" really.

You are right however that rents are gonna keep moving northwards as fewer people are able to buy and are pretty much forced to rent for the long haul.

liffeylite

murphaph wrote: »

This suggests that the "problem" is one of credit supply, rather than real estate supply, no?

If apartments are cheap (which I believe they are tbh), the market for them (to buy) is presumably small. Why is that market small, when it is certainly cheaper to buy an 80k apt than rent it for 800pm? It can really only be, that the would be purchasers, can't get a mortgage for it, for whatever reason, so they are left to investors to buy and rent out at pretty good yields.

I don't see what NAMA flooding the market with cheap properties does for that issue of credit supply. Banks seemingly wouldn't lend you a fiver to buy an apartment in Dublin right now, so there's the "problem" really.

You are right however that rents are gonna keep moving northwards as fewer people are able to buy and are pretty much forced to rent for the long haul.

A problem of credit supply most definatley is a major contributor. Ive mentioned before that ireland really needs to see the introduction of a new cash rich bank from abroad that could fund safe bet mortgages, i.e. 15% deposits and up, to help things get moving. They could also fund well placed and considered developments in key urban zones, to create steady supply. But will such a bank take a punt on the irish market...

Linoge

OMD wrote: »

http://www.let.ie/holiday-homes/William-Bligh-Apartments-The-Gasworks-Barrow-Str-Dublin-4-Co-Dublin/20679
If a one bed can really get this much rent then the price may be real.

Ha! Sweet Jesus, what a dreamer. 1 beds are about 1k pm, 2 beds about 1,200-1300 pm. So a 2 bed for 1,250 pm would be bang on.

ted1

right next to the Google buildings, i'd say they offer high yield. I also thnink that Google emay actually own a good few of the apartments.

Marcusm

Linoge wrote: »

Ha! Sweet Jesus, what a dreamer. 1 beds are about 1k pm, 2 beds about 1,200-1300 pm. So a 2 bed for 1,250 pm would be bang on.

2 beds in The Alliance are priced at 1,600-1,700 pm, can't see the other buildings being much cheaper. There is a serious rental squeeze for that type of apartment at the moment.

Linoge

Marcusm wrote: »

2 beds in The Alliance are priced at 1,600-1,700 pm, can't see the other buildings being much cheaper. There is a serious rental squeeze for that type of apartment at the moment.

I'm in a 2 bed 5 mins from Google, in higher standard apt with parking space for €1,275. They are in demand but not by that much! I was renting a 1 bed in Gasworks a year ago for €975. 1 beds are going for €160-175k. It's absolute bollox that a 2 bed is worth 120k more. Gonna ring again in a few weeks and see if she tells the same story.

Procrastastudy

Linoge wrote: »

I'm in a 2 bed 5 mins from Google, in higher standard apt with parking space for €1,275. They are in demand but not by that much! I was renting a 1 bed in Gasworks a year ago for €975. 1 beds are going for €160-175k. It's absolute bollox that a 2 bed is worth 120k more. Gonna ring again in a few weeks and see if she tells the same story.

Just buy 2 one beds?

Ortiz

Linoge wrote: »

Phoned an EA yesterday to view 1 of the below apts. Apparently, they were already under offer (and taking a deposit today) for €290k.

http://www.daft.ie/searchsale.daft?id=680426
http://www.daft.ie/searchsale.daft?id=680427

To say this reeks of BS is an understatement. 2 apartments to close, 60k above asking within 2 weeks of first ad?? And I have never heard of an EA actually undervaluing a property so much. 2 immaculate apts, with parking spaces, south facing balcony, 8th floor and for 10k less than similar in the same complex.

Of course she very much wanted to take my contact details to let me know of anything else that comes up. Thanks love, but I do have Internet access.

Similar happened about 6 months ago for a 3 bed. EA emailed me pics etc, then when I asked to view it was suddenly sold.

Why are they doing this? To build some fake confidence in the market? To look like they have loads of houses on their books?

I really don't get what you're saying here - are you implying that they never had those properties to begin with and are just pretending they have properties on their books? Why would they bother?

It's pretty simple what has happened here - The EA put a property on the market for x amount and due to the increased demand for properties of that type and in that area a bidding war occurred where the bidding went substantially higher then the asking price. The market dictated the value so I don't really get your attitude towards the EA here

DavyD_83

Ortiz wrote: »

I really don't get what you're saying here - are you implying that they never had those properties to begin with and are just pretending they have properties on their books? Why would they bother?

It's pretty simple what has happened here - The EA put a property on the market for x amount and due to the increased demand for properties of that type and in that area a bidding war occurred where the bidding went substantially higher then the asking price. The market dictated the value so I don't really get your attitude towards the EA here

Pretty much gree with Ortiz here. Not really sure how the OP thinks he is being lied to

The other possibility is the Apartments have sold, and the EA is lying about the final sale price. Should be able to check that out as soon as they appear on property register (at least I think it includes apartments).

LittleBook

Linoge wrote: »

I have never heard of an EA actually undervaluing a property so much.

Ortiz wrote: »

It's pretty simple what has happened here - The EA put a property on the market for x amount and due to the increased demand for properties of that type and in that area a bidding war occurred where the bidding went substantially higher then the asking price. The market dictated the value so I don't really get your attitude towards the EA here

I've gotten the impression lately (been looking at a specific area for several months) that a new EA tactic is to deliberately advertise a house at a relatively lower price than people expect, hold an open house and let the buyers do all the work. Bidding wars ensue but I think the EA knows exactly what they're doing and are advertising below the price sought.

Linoge

If it was a once off I wouldn't be suspicious, but this is twice now. Would it be realistic for 2 apartments to be sold in 2 weeks? Maybe. Both for 60k over asking and above similar apts in same complex, I find less likely.

Luca Brasi

It explains why auctioneers can move seamlessly into politics.

LittleBook

Linoge wrote: »

If it was a once off I wouldn't be suspicious, but this is twice now. Would it be realistic for 2 apartments to be sold in 2 weeks? Maybe. Both for 60k over asking and above similar apts in same complex, I find less likely.

Same EA, same tactic, same result ... could even be the same buyer!

I understand your suspicion but I'm not sure there's any more to it than this.